In Re Childs Co‪.‬

In the reorganization proceedings of Childs Company the bankruptcy court conducted a judicial sale at which the appellant, Irving Brodsky, became the successful bidder for improved real estate known as 108-110 West 34th Street, New York City. The vendor was 108 West 34th Street Corporation, a subsidiary of Childs Company. The debtors trustee had caused this subsidiary to enter into a contract of sale, dated February, 1, 1946, with a prospective purchaser but the contract was subject to the courts approval and was to be annuled if a better offer were obtained. By petition of February 19, 1946 the trustee brought on the hearing of March 19th at which approval of the conditional contract of February 1st was to be considered and other bids received.At this hearing the highest bid was made by Brodsky and the property was knocked down to him at the price of $775,000, of which $180,000 was to be cash, $225,000 was to consist of a purchase money second mortgage to be executed by the purchaser, and $370,000 was represented by the existing first mortgage, subject to which the title was to be conveyed. As the successful bidder, Brodsky was directed to make a $30,000 deposit which he did, and to enter into a formal contract the terms of which were to be identical with those of the contract of February 1st except for the increase in the purchase price and the elimination of the provision abrogating the contract in case of a higher bid. Instead of signing a formal contract himself, Brodsky caused a contract of purchase to be executed by his nominee, Molly Weingarten, and this contract was approved by the court by order dated April 26, 1946. Thereafter, on account of alleged defects in title, Brodsky instructed Weingartens attorney to refuse to carry out her contract of purchase and to demand the return of the $30,000 deposit. In November 1946 the trustee began the present proceeding, petitioning for an order adjudging that the title tendered to Weingarten was in all respects good and marketable, holding Brodsky in contempt for failing to consummate his successful bid accepted at the sale conducted by the court on March 19, 1946, and granting "such other and further relief in the premises as may be just and proper." The petition was answered by Brodsky and, after hearings, the court entered the order appealed from. This adjudged that the objections to title raised by the Brodsky and his nominee were frivolous, that the title tendered by the trustee was good and marketable, and that Brodsky be directed to consummate his bid for the premises "by taking title or causing his nominee, Molly Weingarten, to take title thereto in accordance with the terms agreed upon in the agreement dated April 22, 1946."